Senate approves budget, warned of transportation 'fiscal cliff'

Updated 8:50 pm, Wednesday, March 20, 2013

AUSTIN — Texas senators highlighted efforts to restore education funding and keep up with health services for the poor as they approved a $195.5 billion state budget Wednesday.

But Senate leaders warned there is much work yet to be done to meet the state's needs.

Texas faces a “fiscal cliff” on transportation that remains unchanged by the budget, said Finance Committee Chairman Tommy Williams, R-The Woodlands. Some advocates, meanwhile, pushed to put more money into public schools and other programs as Senate Bill 1 advances.

The two-year budget proposal includes a 7.7 percent increase in state general revenue funds controlled by lawmakers that encompasses increases for public and higher education. The Senate approved it 29-2.

“Public education is a big priority in my district, and I've got to do what's right by my district,” Garcia said.

Davis offered and then pulled an amendment meant to direct more money to education. “I believe this budget fails Texas children,” she said.

“I know that this is not a perfect document, but it's a step, I think, in the right direction,” said Sen. Leticia Van de Putte, D-San Antonio. She lauded funding for an initiative she pushed to provide more full-time counselors for the Texas National Guard in the face of military suicides.

The proposal heads to the House, where budget-writers are working on their own spending plan that deals with similar funding amounts in key areas, such as public schools.

The House proposal, which the Appropriations Committee plans to vote on today, is about $2.6 billion less than the Senate version in state and federal funding combined, said committee Chairman Jim Pitts, R-Waxahachie. The differences are largely in spending on higher education and human services, particularly Medicaid, Pitts said.

Differences between the Senate bill and the version ultimately passed by the House will be worked on in a conference committee made up of House and Senate members.

Targeted pay increases to employees in areas of high turnover, including those who work with vulnerable Texans

Senate leaders highlighted strides from the beyond-bare-bones budget approved two years ago in the face of a predicted revenue shortfall.

“We've come a long way, baby — since last session,” Williams quipped.

They cited a $1.5 billion increase for public schools after covering enrollment growth, following a $5.4 billion cut two years ago. The budget proposal also increases money for mental health services and higher-education grants and restores family planning funding that was slashed two years ago.

Williams said he is concerned about growth in Medicaid, saying the state needs to find a way to deliver services to the people who need them in a more cost-efficient way.

He also said lawmakers must deal with transportation funding or risk major problems. Such an initiative would require separate legislation.

He said the state is bidding out about $4 billion worth of highway projects every year. Just to keep congestion from getting worse, that should be $6 billion to $8 billion, he said.

Without more money, lettings for new construction are predicted to drop to $2.5 billion in a couple of years, prompting an increase in congestion and a decrease in economic opportunity, he said.

Leaders including Gov. Rick Perry have advocated taking some money from the state's rainy day fund to set up a revolving loan fund for transportation and water.

Some lawmakers have proposed additional state revenue sources, from gasoline taxes to fees. Williams has talked about increasing the motor vehicle registration fee, an idea that Pitts said is also under discussion in the House.